WOW! What the hell can happen next? The Washington DC (the DC in this case stands for Dumb Circus) is enough to keep the market on edge. Throw in one of the most devastating hurricanes in history hitting the Texas/Louisiana coast and you have enough to roil the markets.

FOREX markets generally are not extremely volatile. They tend to trade with the prevailing trend for extended times and the oscillations in price are generally not very large. However, the usual oscillations, particularly for a short term trader, are often tradable and a savvy trader can make a very nice return on a consistent basis.

Many years ago I played Tug of War, a game where two sides, using a long strong rope, sought to pull the opposing side across a line between the two groups. A ploy to trick the other side soon developed – we called it “Fake and Reversal”. The strategy is simple – suddenly intentionally give […]